Resources bull run ‘won’t last’

The Federal Government’s Budget bottom line has been bolstered by stronger-than-expected commodity prices, although its economic forecasts for coming years are based on expectations of a fall in the price of iron ore and metallurgical coal. The Budget papers also forecast that Australia’s terms of trade will rise by 1.5 per cent in 2017-18, followed by a decline over the next four years, including a 5.25 per cent fall in 2018-19. The Budget also notes that the global price of oil will have a greater influence on Australia’s export revenue in coming years as the nation’s LNG exports increase.